CBI Warns Rishi Sunak against ‘Doom Loop’ of Public Spending Cuts

THE GUARDIAN: Director general Tony Danker says it is vital new UK PM does not pursue path of austerity

The head of the Confederation of British Industry has warned Rishi Sunak against pursuing an austerity “doom loop” of cuts to public spending and tax rises amid fears over a mixed outlook for the economy.

Tony Danker, the director general of the CBI, said it was vital for the new UK prime minister not to repeat the mistakes made by David Cameron’s Conservative-Liberal Democrat coalition when billions of pounds were slashed from public spending.

“Let’s remember, the 2010s began with some austerity and were then ensued with very low growth, zero productivity and low investment, right? It wasn’t a successful strategy for growth,” he told BBC Radio 4’s Today programme. » | Richard Partington, Economics correspondent | Tuesday, October 25, 2022